JERUSALEM – Palestinian officials yesterday shut universities and schools in the Gaza Strip in a bid to prevent more anti-U.S. protests.

The move followed bloody clashes Monday between Palestinian police and supporters of terror chief Osama bin Laden. Two Palestinians were killed and more than 200 hurt.

The violence showed the deep split between Palestinian Authority leader Yasser Arafat, who does not want to alienate the United States as it begins its war against terrorism, and Islamic militants, who hail bin Laden as a hero.

Yesterday, the Islamic University and the Al Azhar University in Gaza City were closed until the end of the week and other schools were shut for the day. After Monday’s battling in Gaza, leaders of the major Palestinian factions, including Arafat’s Fatah and its chief rival, the militant Islamic group Hamas, met and agreed to cooperate to restore order in Palestinian-ruled areas.

“What happened in Gaza, with great regret, is a black mark and is rejected by all,” one Hamas leader said.

Witnesses said the police opened fire, killing two demonstrators, aged 13 and 21, at a rally called by Hamas, which opposes peace with Israel.

But police, who had declared the march illegal, insisted masked gunmen had shot the protesters dead.

In the West Bank city of Nablus, students at Al Najah University, a Palestinian college, demonstrated in support of the Afghan people – but steered clear of voicing either support for bin Laden or condemnation of the United States.

In Washington, the Bush administration called for restraint by Palestinian police in handling protests against U.S. airstrikes in Afghanistan.

State Department spokesman Richard Boucher said the U.S. is encouraged by recent steps taken by Arafat’s Palestinian Authority to honor its commitment to a cease-fire with Israeli forces.